Breaking Down Inogen, Inc. (INGN) Financial Health: Key Insights for Investors

Are you keeping a close watch on Inogen, Inc. (INGN) and wondering about its financial stability? In 2024, the company reported a total revenue of $335.7 million and a gross margin of 46.1%. But how does this translate into long-term financial health? Dive in to explore key metrics, recent financial results, and strategic moves that could influence Inogen's trajectory in the ever-evolving medical technology landscape.

Inogen, Inc. (INGN) Revenue Analysis

Understanding Inogen, Inc.'s (INGN) revenue streams involves examining its primary revenue sources, year-over-year growth, and the contribution of different business segments. A comprehensive analysis reveals the company's financial health and key insights for investors. You might be also interested in: Mission Statement, Vision, & Core Values of Inogen, Inc. (INGN).

For the full year 2024, Inogen reported a total revenue increase of 6.4%, reaching $335.7 million compared to $315.7 million in 2023. This growth was primarily fueled by higher demand and new customers in international and domestic business-to-business (B2B) sales.

However, this positive performance was partially offset by lower direct-to-consumer (DTC) sales and rental revenue, reflecting the company's strategic initiatives to enhance overall profitability. In the fourth quarter of 2024, total revenue increased by 5.5% to $80.1 million from $75.9 million in the fourth quarter of 2023. This growth was also primarily driven by higher demand and new customers in international and domestic B2B sales.

Here is a breakdown of Inogen's revenue performance by segment for the full year 2024:

• Total Revenue: $335.7 million, a 6.4% increase year-over-year
• Domestic B2B Sales: Increased by 26.2% to $83.6 million
• International B2B Sales: Increased by 31.1% to $117.2 million
• Consumer Sales: Decreased by 21.3% in Q4
• Rental Revenue: Decreased by 16.5% in Q4

The increase in gross margin was attributed to lower raw material costs and operational efficiencies. Specifically, the total gross margin for the full year 2024 improved to 46.1%, up from 40.1% in 2023.

Inogen's revenue streams can be further analyzed with the following data:

Inogen's business-to-business segment drove significant growth in the fourth quarter and full year 2024, with double-digit revenue increases. This success can be attributed to several strategic initiatives:

1. Strong demand and new customer gains: Inogen experienced higher demand and new customer gains across both domestic and international B2B channels, contributing to the segment's growth.
2. Product innovation and diversification: The launch of Rove 4, and the FDA clearance of SIMEOX 200, expanded Inogen's product portfolio and attracted new customers.
3. Improved product positioning and competitive advantages: The strong performance in the B2B channel suggests growing acceptance among healthcare providers and institutional buyers, indicating improved product positioning, competitive advantages, or enhanced clinical outcomes.
4. Disciplined cost management: Inogen's focus on disciplined cost management helped improve profitability and support growth in the B2B segment. By optimizing raw material costs and sales channel mix, the company maintained a strong gross margin of 46.5% in the third quarter of 2024, up from 40.2% in the same period the previous year.

Here's a table summarizing Inogen's financial performance in Q4 2024:

Looking ahead, Inogen anticipates revenue in the range of $352 million to $355 million for the full year 2025, reflecting a 5% to 6% growth relative to 2024. The company also expects a gross margin in the range of 43% to 45% of total revenue for 2025, influenced by channel mix shift and costs associated with the introduction of new products. A strategic collaboration with Yuwell Medical is expected to further expand Inogen's market reach in China and diversify its product offerings.

Inogen, Inc. (INGN) Profitability Metrics

Understanding Inogen, Inc.'s profitability involves examining several key metrics that provide insights into its financial health and operational efficiency. These metrics include gross profit, operating profit, and net profit margins. Analyzing these figures over time and comparing them with industry averages can reveal important trends and areas for improvement.

Gross profit is the revenue a company retains after deducting the direct costs associated with producing its goods and services. In Inogen's case, this reflects the revenue remaining after subtracting the costs of manufacturing and delivering its oxygen concentrators and related services. The trend in gross profit indicates how efficiently Inogen manages its production costs relative to its sales revenue.

Operating profit provides a clearer picture of Inogen's profitability from its core business operations. It is calculated by subtracting operating expenses, such as selling, general, and administrative costs, as well as research and development expenses, from the gross profit. The operating profit margin, which is operating profit divided by total revenue, indicates how well Inogen controls its operational costs and generates profit from its primary activities.

Net profit represents Inogen's bottom-line profitability after accounting for all expenses, including interest, taxes, and other non-operating items. The net profit margin, calculated as net profit divided by total revenue, shows the percentage of revenue that ultimately translates into profit for the company. This metric is crucial for assessing Inogen's overall financial performance and its ability to generate returns for shareholders.

Analyzing the trends in these profitability metrics over several periods offers valuable insights. A consistent increase in gross profit margin, operating profit margin, and net profit margin suggests improving operational efficiency and cost management. Conversely, declining margins may indicate rising costs, pricing pressures, or inefficiencies in the business model. Comparing Inogen's profitability ratios with industry averages helps benchmark its performance against its peers. If Inogen's margins are consistently higher than the industry average, it may indicate a competitive advantage. If they are lower, it could signal areas where Inogen needs to improve its operational efficiency or strategic positioning.

Operational efficiency is critical to Inogen's profitability. Effective cost management, including controlling production costs, streamlining operations, and managing administrative expenses, can significantly impact its bottom line. Monitoring gross margin trends helps assess how well Inogen manages its production costs and pricing strategies. A rising gross margin typically indicates improved cost control or pricing power, while a declining gross margin may suggest rising input costs or increased competition.

Ultimately, a comprehensive analysis of Inogen's profitability metrics provides investors with a deeper understanding of its financial health, operational efficiency, and ability to generate sustainable profits. This information is essential for making informed investment decisions and assessing the company's long-term growth potential.

• Gross profit margin
• Operating profit margin
• Net profit margin

These metrics are vital for investors.

Learn more about Inogen, Inc. (INGN): Exploring Inogen, Inc. (INGN) Investor Profile: Who’s Buying and Why?

Inogen, Inc. (INGN) Debt vs. Equity Structure

Understanding how Inogen, Inc. (INGN) finances its operations and growth is crucial for investors. This involves examining the company's debt levels, its debt-to-equity ratio, and how it strategically uses debt versus equity to fund its activities. Here's a breakdown:

As of the fiscal year 2024, Inogen's financial structure includes both short-term and long-term debt. Evaluating these components provides insights into the company's financial obligations and stability.

• Overview of Debt Levels: Inogen's approach to debt management involves balancing short-term financial needs with long-term obligations.
• Short-Term Debt: This includes obligations due within one year, such as accounts payable, accrued expenses, and the current portion of long-term debt.
• Long-Term Debt: This consists of obligations extending beyond one year, which may include term loans, bonds, or other financing arrangements.

The debt-to-equity ratio is a key metric in assessing Inogen's financial leverage. It indicates the proportion of debt the company uses to finance its assets relative to the value of shareholders' equity. A higher ratio suggests greater financial risk, while a lower ratio indicates a more conservative approach.

Comparing Inogen's debt-to-equity ratio to industry standards provides context. If Inogen's ratio is significantly higher than its peers, it may signal higher risk. Conversely, a much lower ratio could indicate that the company is not taking full advantage of leverage to enhance returns.

Recent activities, such as new debt issuances, changes in credit ratings, or refinancing efforts, can significantly impact Inogen's financial health. For example, a credit rating upgrade can lower borrowing costs, while refinancing can extend debt maturities and improve cash flow.

Inogen strategically balances debt and equity to fund its operations and growth initiatives. Debt financing can provide capital without diluting ownership, but it also introduces fixed interest payments and the risk of default. Equity funding, on the other hand, does not require repayment but dilutes existing shareholders' ownership.

The following table summarizes key aspects of Inogen's debt and equity structure:

Understanding Inogen's approach to balancing debt and equity is essential for assessing its financial strategy and risk profile. Investors should consider these factors when evaluating the company's overall financial health and growth potential. More insights into the company's values and objectives can be found at Mission Statement, Vision, & Core Values of Inogen, Inc. (INGN).

Inogen, Inc. (INGN) Liquidity and Solvency

Assessing Inogen, Inc.'s financial health involves a close look at its liquidity and solvency positions. These metrics provide insights into the company's ability to meet its short-term obligations and long-term financial stability.

Here's an overview:

• Current Ratio: For the fiscal year ending December 31, 2024, Inogen's current ratio was 2.42. In 2023, the current ratio was 2.86.
• Quick Ratio: The quick ratio, which measures a company's ability to meet its short-term obligations with its most liquid assets, was 2.09 for the quarter that ended in December 2024. The quick ratio in 2023 was 2.55.

These ratios indicate Inogen's capacity to cover its short-term liabilities with its current and liquid assets. A current ratio of above 1 generally suggests good liquidity.

Working Capital:

Inogen's working capital as of December 31, 2024, was reported as $108.765 million, compared to $134.571 million in 2023.

Cash Flow Statements Overview:

The cash flow statement provides a detailed look at the movement of cash both into and out of the company. Here’s a summary of Inogen’s cash flow activities:

• Operating Cash Flow: For the year 2024, Inogen's operating cash flow was $5.914 million, a notable shift from $-3.234 million in 2023.
• Investing Cash Flow: In 2024, Inogen experienced an investing cash flow of $-13.975 million, compared to $-59.315 million in 2023.
• Financing Cash Flow: The financing cash flow for 2024 was $265,000, compared to $960,000 in 2023.
• End Cash Position: Inogen's end cash position for 2024 was $117.415 million, compared to $125.492 million in 2023.

Here is a table summarizing Inogen's cash flow data (in thousands of USD):

Potential Liquidity Concerns or Strengths:

• Strengths: Inogen maintains a healthy current ratio of 2.66, with more cash than debt on its balance sheet, suggesting strong financial flexibility despite operational challenges.
• Operating Cash Flow Improvement: Inogen has demonstrated positive operating cash flow of $3 million, marking the second consecutive quarter of positive cash flow.

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Inogen, Inc. (INGN) Valuation Analysis

Determining whether Inogen, Inc. (INGN) is overvalued or undervalued requires a multifaceted approach, incorporating key financial ratios, stock performance analysis, and analyst opinions. A comprehensive valuation considers several factors:

• Price-to-Earnings (P/E) Ratio: This ratio compares Inogen's stock price to its earnings per share, indicating how much investors are willing to pay for each dollar of earnings. A higher P/E ratio might suggest overvaluation, while a lower one could indicate undervaluation, relative to industry peers or Inogen's historical averages.
• Price-to-Book (P/B) Ratio: The P/B ratio measures the market value of Inogen relative to its book value (net asset value). A lower P/B ratio may suggest the stock is undervalued, as it implies the market is valuing the company at less than its net asset value.
• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: This ratio compares Inogen's enterprise value (market capitalization plus total debt minus cash) to its earnings before interest, taxes, depreciation, and amortization (EBITDA). It provides a more comprehensive valuation measure than P/E, especially when comparing companies with different capital structures.

Analyzing Inogen's stock price trends over the last 12 months, or longer, provides insights into market sentiment and investor confidence. Significant price appreciation could suggest growing optimism, while a declining trend might indicate concerns about the company's future prospects.

Inogen, Inc. does not currently offer a dividend. Therefore, dividend yield and payout ratios are not applicable to its valuation analysis.

Analyst consensus on Inogen’s stock valuation—categorized as buy, hold, or sell—reflects the collective opinion of financial analysts covering the company. These ratings are based on in-depth analysis of Inogen’s financial performance, industry trends, and growth prospects.

As of April 2025, the latest available data indicates:

According to MarketWatch, as of April 18, 2024, Inogen Inc. had an EPS (TTM) of -1.51. The P/E ratio cannot be calculated meaningfully when the EPS is negative.

According to Yahoo Finance, Inogen Inc.'s price to book ratio is 1.71 as of today, April 21, 2025.

Unfortunately, I don't have enough information to provide the Enterprise Value-to-EBITDA (EV/EBITDA) ratio and analyst consensus on stock valuation for Inogen, Inc. (INGN). To get a more complete picture of the company's valuation, I recommend consulting financial analysis platforms for the most up-to-date data.

For further insights, you might find this resource helpful: Breaking Down Inogen, Inc. (INGN) Financial Health: Key Insights for Investors

Inogen, Inc. (INGN) Risk Factors

Several internal and external factors could potentially impact Inogen, Inc.'s (INGN) financial health. These risks span industry competition, regulatory changes, and overall market conditions.

Here's a breakdown:

• Industry Competition: Inogen faces stiff competition from other portable oxygen concentrator (POC) producers and distributors, as well as suppliers of alternative long-term oxygen therapy (LTOT) services like home delivery of oxygen cylinders. The relatively straightforward regulatory path in the oxygen therapy device market suggests increasing competition in the future.
• Regulatory Changes: Changes in regulations, particularly concerning Medicare reimbursement policies, pose a risk. The evolution of the competitive bidding program and reimbursement rates can significantly affect Inogen's revenue.
• Market Conditions: Market acceptance of Inogen's products is crucial. Any failure to gain or maintain market acceptance could harm financial performance.

Operational, financial, and strategic risks are also evident in recent earnings reports and filings:

• Direct-to-Consumer (DTC) Sales Decline: In Q4 2024, DTC sales decreased by 21.3% due to a downsized sales force. Challenges in the DTC channel are expected to continue into the first half of 2025.
• Rental Revenue Decline: Rental revenue decreased by 16.5% in Q4 2024, primarily due to lower average billing rates and a shift to private payers.
• Gross Margin Pressures: While Inogen reported significant improvements in gross margins, achieving an 821 basis points increase in Q4 2024, there are potential pressures from raw material costs and the introduction of new products.
• International Sales Instability: Overseas revenues are expected to be erratic due to distributor size and timing. Unfavorable foreign exchange rates are also anticipated to hinder revenue growth. Forex volatility hurt international sales by 330 basis points during Q4 2024.

Inogen has outlined several mitigation strategies and plans to address these risks:

• Strategic Collaboration with Yuwell Medical: This collaboration includes a $27 million investment and expands market reach in China. It is expected to broaden Inogen's product portfolio and facilitate entry into the Chinese market.
• Product Portfolio Expansion: Inogen launched the Rove 4 POC and received FDA clearance for the Simeox device, diversifying its global product offerings. The company is also focusing on future product upgrades, such as a potential transition to Rove 6.
• Cost Management and Operational Efficiency: Inogen is focused on disciplined cost management, including streamlining the sales force and channel optimization. This involves shifting from less efficient DTC efforts to more focused prescriber outreach.
• Focus on B2B Growth: The company is strategically focusing on business-to-business (B2B) channel growth, which has shown strong double-digit growth.

Here's a summary of Inogen's 2024 financial performance:

For more insights, check out: Breaking Down Inogen, Inc. (INGN) Financial Health: Key Insights for Investors

Inogen, Inc. (INGN) Growth Opportunities

For investors eyeing Inogen, Inc. (INGN), understanding the company's potential for future growth is crucial. Several factors appear poised to influence Inogen's trajectory, ranging from innovative product development to strategic market penetration and partnerships.

Key growth drivers for Inogen, Inc. (INGN) include:

• Product Innovations: Inogen's focus on developing and launching new portable oxygen concentrators (POCs) tailored to diverse patient needs remains a central growth strategy.
• Market Expansion: Expanding into new geographic markets and demographics could significantly boost Inogen's revenue streams.
• Strategic Acquisitions: While not always predictable, strategic acquisitions of complementary businesses or technologies could provide Inogen with new capabilities and market access.

Future revenue growth projections and earnings estimates are subject to change, influenced by market conditions and company-specific developments. Investors should consult reputable financial analysis platforms for the most up-to-date forecasts.

To propel future growth, Inogen, Inc. (INGN) may leverage strategic initiatives and partnerships, such as:

• Telehealth Partnerships: Collaborating with telehealth providers to integrate Inogen's POCs into remote patient monitoring and care programs.
• Distribution Agreements: Expanding distribution networks through partnerships with durable medical equipment (DME) suppliers and healthcare providers.

Inogen, Inc. (INGN) holds several competitive advantages that could position the company for sustained growth:

• Technological Leadership: A strong track record of innovation in POC technology, including features like long battery life and quiet operation.
• Brand Recognition: A well-established brand name associated with quality and reliability in the respiratory care market.
• Direct-to-Consumer Model: A direct-to-consumer sales model that allows Inogen to control its brand messaging and customer experience.

Here is a snapshot of Inogen, Inc.'s (INGN) recent financial performance:

Explore more about Inogen, Inc. (INGN) investors: Exploring Inogen, Inc. (INGN) Investor Profile: Who’s Buying and Why?